Correlation Between World Energy and Dfa Short

Can any of the company-specific risk be diversified away by investing in both World Energy and Dfa Short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining World Energy and Dfa Short into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between World Energy Fund and Dfa Short Duration Real, you can compare the effects of market volatilities on World Energy and Dfa Short and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in World Energy with a short position of Dfa Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Energy and Dfa Short.

Diversification Opportunities for World Energy and Dfa Short

0.38

Correlation Coefficient

World Energy  Dfa Short

Weak diversification

The 3 months correlation between World and Dfa is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding World Energy Fund and Dfa Short Duration Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Short Duration and World Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on World Energy Fund are associated (or correlated) with Dfa Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Short Duration has no effect on the direction of World Energy i.e., World Energy and Dfa Short go up and down completely randomly.

Pair Corralation between World Energy and Dfa Short

Assuming the 90 days horizon World Energy Fund is expected to generate 23.99 times more return on investment than Dfa Short. However, World Energy is 23.99 times more volatile than Dfa Short Duration Real. It trades about 0.06 of its potential returns per unit of risk. Dfa Short Duration Real is currently generating about 0.38 per unit of risk. If you would invest  1,293  in World Energy Fund on September 13, 2025 and sell it today you would earn a total of  541.00  from holding World Energy Fund or generate 41.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

World Energy Fund  vs.  Dfa Short Duration Real

World Energy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in World Energy Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, World Energy may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Dfa Short Duration

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dfa Short Duration Real are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Dfa Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with World Energy and Dfa Short

The main advantage of trading using opposite World Energy and Dfa Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Energy position performs unexpectedly, Dfa Short can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dfa Short will offset losses from the drop in Dfa Short's long position.

The idea behind World Energy Fund and Dfa Short Duration Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.